Clark's Estate

Citations

• 230 Pa. 158
• 79 A. 246
• 1911 Pa. LEXIS 581

Syllabus

<p>Trusts and trustees — Trust ex maleficio.</p> <p>Where a bank holds as collateral for a loan the stock of a corporation, and also the guarantee of the president of the corporation, the loan being to another party, and the guarantor submits to the bank, at its request, a statement of the financial condition of Ms company, in wMch he neglects to include an indebtedness to himself which is afterwards paid, and the bank makes no extension or additional loan on the strength of the statement, and thereafter the guarantor dies, the bank cannot claim that the decedent’s administrator held any portion of the money paid to it on account of his indebtedness as a trustee ex maleficio for the bank.</p>